PROPERTY -- Flat market as boom times fade

Rising interest rates, the expiry of first home buyer incentives, and of course a federal election, have taken most of the heat out of the property market.

Cameron Kusher

Senior research analyst

RP Dtata

The residential property market is officially in slow down.

As the market transitions from a period of strong growth in 2009 we are now well into a period of relatively flat price growth and would-be property buyers can expect a softer residential market environment to continue for the remainder of the year.

According to the RP Data-Rismark Home Value Index for the June quarter 2010, national capital city home values increased 10.5 per cent in the year to June. Over the quarter itself, values were relatively flat, recording a fall of 0.2 per cent.

In terms of houses versus units, the more affordable unit market has been outperforming the housing market.

Over the last year units have recorded value growth of 11.4 per cent compared to 10.2 per cent for houses.

Over the last quarter, houses have recorded a value decline of -0.3 per cent while unit values have shown a slight increase of 0.2 per cent over the quarter.

It is worth noting that the market is most certainly not acting homogenously, with individual capital cities having recorded value growth of as much as 16 per cent and as little as 3.9 per cent over the past year.

Over the last quarter growth has well and truly slowed with the best performing capital city registering growth in values of 1.1 per cent and the poorest performer has seen values decline by -3.1 per cent.

LATEST FIGURES

BRISBANE

Median house price: $470,000

Quarterly growth: -0.21%

Annual growth: 9.52%

Average annual growth: 11.29%

Median weekly rent: $370

Gross rental yield: 4.09%

Median unit price: $380,000

Quarterly growth: 1.33%

Annual growth: 5.63%

Average annual growth: 8.26%

Median weekly rent: $350

Gross rental yield: 4.79%

SYDNEY

Median house price: $585,000

Quarterly growth: 3.36%

Annual growth: 19.11%

Average annual growth: 8.51%

Median weekly rent: $450

Gross rental yield: 4.00%

Median unit price: $451,000

Quarterly growth: 4.88%

Annual growth: 11.97%

Average annual growth: 5.53%

Median weekly rent: $410

Gross rental yield: 4.73%

CANBERRA

Median house price: $545,000

Quarterly growth: -1.00%

Annual growth: 14.13%

Average annual growth: 11.91%

Median weekly rent: $465

Gross rental yield: 4.44%

Median unit price: $415,000

Quarterly growth: -1.19%

Annual growth: 9.73%

Average annual growth: 11.50%

Median weekly rent: $400

Gross rental yield: 5.01%

MELBOURNE

Median house price: $490,000

Quarterly growth: 4.93%

Annual growth: 18.59%

Average annual growth: 10.00%

Median weekly rent: $350

Gross rental yield: 3.71%

Median unit price $430,000

Quarterly growth: 3.61%

Annual growth: 17.14%

Average annual growth: 8.97%

Median weekly rent: $340

Gross rental yield: 4.11%

ADELAIDE

Median house price: $406,000

Quarterly growth: 1.50%

Annual growth: 10.23%

Average annual growth: 11.21%

Median weekly rent: $315

Gross rental yield: 4.03%

Median unit price: $341,125

Quarterly growth: 4.96%

Annual growth: 8.47%

Average annual growth: 11.99%

Median weekly rent: $275

Gross rental yield: 4.19%

PERTH

Median house price: $496,000

Quarterly growth: -2.36%

Annual growth: 11.82%

Average annual growth: 12.64%

Median weekly rent: $380

Gross rental yield: 3.98%

Median unit price: $422,500

Quarterly growth: 0.60%

Annual growth: 12.85%

Average annual growth: 12.88%

Median weekly rent: $330

Gross rental yield: 4.06%

DARWIN

Median house price: $539,000

Quarterly growth: 4.66%

Annual growth: 16.78%

Average annual growth: 11.53%

Median weekly rent: $520

Gross rental yield: 5.02%

Median unit price: $395,000

Quarterly growth: -4.82%

Annual growth: 15.38%

Average annual growth: 9.49%

Median weekly rent: $410

Gross rental yield: 5.40%

MORTGAGE INDICATORS

LENDING FOR OWNER OCCUPIER HOUSING -SEASONALLY ADJUSTED

July 10: $13.761 billion

Change from June 10: Increased by 2.3%

Change from July 09: Decreased by 18.5%

AVERAGE NEW OWNER OCCUPIER HOME LOAN

July 10: $289,300

Change from June 10: Increased by 13.3%

Change from July 09: Increased by 8.5%

FIXED RATE LOANS AS PERCENTAGE OF OWNER OCCUPIER LOANS

July 10: 4.0%

Change from June 10: Increased by 0.6%

Change from July 09: Decreased by 3.2%

FIRST HOME BUYERS AS PERCENTAGE OF OWNER OCCUPIER FINANCE COMMITMENTS

July 10: 16.1%

Change from June 10: Increased by 0.1%

Change from July 09: Decreased by 9.2%

Source: ABS

BUILDING APPROVALS

TOTAL DWELLING UNITS APPROVED

July 10: 13,732

Change from June 10: Increased by 2.3%

Change from July 09: Increased by 11.0%

TOTAL PRIVATE SECTOR HOUSES APPROVED

July 10: 8,624

Change from June 10: Decreased by 0.1%

Change from July 09: Decreased by 0.8%

TOTAL PRIVATE SECTOR OTHER DWELLINGS APPROVED

July 10: 4,216

Change from June 10: Increased by 7.7%

Change from July 09: Increased by 38.0%

Source: ABS